A company is considering purchasing equipment costing $90,000. The equipment is expected to reduce costs from year 1 to 5 by $20,000, year 6 to 11 by $15,000, and in year 12 by $3,000. In year 12, the equipment can be sold at a salvage value of $22,000.
a) Calculate the internal rate of return​ (IRR) for this proposal.